Bitcoin (BTC/USD) has been trading around $57,748 within the downtrend channel forming since August 27, below the 21 SMA, and below 3/8 Murray. If Bitcoin continues its downward movement, it is expected to reach 2/8 Murray around 56,250, the level that coincides with the bottom of the downtrend channel.
Bitcoin reached the top of the bearish trend channel and it could not consolidate above 3/8 Murray, since above this area, there is the 200 EMA which acts as a strong resistance.
Bitcoin is trading below the psychological level of $60,000. It is likely to continue its fall in the next few days and could even reach the low of August 5 around 48,890.
If Bitcoin consolidates above 58,600, it is likely to challenge the resistance of the bearish channel again. If it consolidates above 59,375, the outlook could be positive and we could expect it to reach 4/8 of Murray around 62,500.
The eagle indicator has reached the oversold zone. BTC could likely resume its bullish cycle. The key will be to trade above 56,250.
